Exchange loss
This query is : Resolved
27 June 2012
direct meterial purchased from outside India.Exchange loss or gain relating to those purchases directly reduced or added to purchases .Above treatment done by one company the treatment correct or not as per companies act?please tell me treatment of exchange loss or gain as per companies act? what affect of incometax?
27 June 2012
Prior to revised schedule VI, companies followed accounting policy to adjust purchase and sales with their respective exchange fluctuations on creditors and debtors. One of the objective was to get away from Tax authorities scanner. But not always, as the ITO normally asks for seperate statement for unrealised forex and then it depends upon him whetehr to allow or disallow. There are many cases on both allownace as well as disallownace on this subject.
However, in revised schedule VI, it is clear that the exchange fluctuation has to be part of Other expense or Other income seperately.
However, in revised schedule VI, it is clear that the exchange fluctuation has to be part of Other expense or Other income seperately.
27 June 2012
yes i am agree with sanjay.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Suggestions required for income tax filing-software (FY 2025-26)
- STCG FOR GOLD ETFs
- E way bill for tractors
- LTCG for Assmt year 26-27
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
